The festive quarter of 2017

The end of year 2017 (the first quarter of 2018 fiscal year) were announced in February. At first glance, everything was better than fine. The crisis in the industry is absolutely not touched upon Apple company does everything right: it was a record holiday quarter, 13% more successful than the previous record holiday quarter. More successful in terms of money. The rest was worse.

It would seem, should rejoice. A record quarter. The shareholders received the largest income for their shares in the entire history of the company. In the end, the main goal of companies is to generate profit. To make money. The company which earned 88,293 billion dollars in three months, at least, is doing well. The richest IT company in the world has become even richer. So to keep? Alas.

Remember how year after year, the opening of the next theatrical performance Apple, first Steve and then Tim reported increasing lag the computer industry by Apple, that sales of Macs in spite of that, grow. Bought them, they even loved and there was nothing strange. In 2007, the Macs had a little brother, ahead of their first sales, and then bring on the expense of the company income. The success of Macs were much more modest, and yet – year after year, their sales grew. Until a record holiday quarter of 2017.

iPhone and Mac

On account of the company in the October-December 2017 received 88,293 billion dollars. The year before, the previous most successful and record-breaking quarter in history, Apple earned “only” 78,31 billion. As before, a large part of the revenue brought iPhone: 61,576 billion. In the holiday quarter of 2016 Apple has earned them 54,378 billion, an increase of 13%. In units the situation is different. In the holiday quarter 2016 78,290 has sold million iPhone. In October-December 2017 – 77,316 almost a million units less. Or 1%.

In fact, this is obvious, but it is impossible not to note: to earn a large sum by selling less iPhones is the only way. Due to a significant increase in their prices. Shocked by the beauty and singularity of X iPhone, people were willing to pay him a thousand dollars, for a variety of reasons. Face ID made them and their friends a lasting impression. Wireless charging, a design from the future (in which the competitors were a little earlier – but still from the future). iPhone 8 Plus too cheap you will not name, and sold about the same success. But bought still less than a year ago. A little? And that costs more (or about) thousands of dollars and easily able to last for several years, I buy every year.

Mac with AMI was even worse. In October-December 2017 were sold 5,122 million pieces by 6.89 billion. Over the same period of 2016 – 5,374 million units, at 7,244 billion. And in units, and in dollars – a decrease of 5%. The butterfly effect (I mean the Butterfly keyboard)? For the first time in many years, even I with some apprehension reacted to the “innovation” of 2017. In the past with Mac AMI was wrong cause trouble, but this has not happened, and a decline of 5% was deserved. Sale iMac Pro began in the same quarter, its problems have not yet had time to manifest itself, all was yet to come.

Everything else is safely

Except for Macs and the iPhone, Apple reports quarterly reports on performance in three areas: iPad sales, services, and “other products”. Other products are Apple Watch, Apple TV, iPod touch, Beats and all kinds of accessories from Apple and third-party companies. We now know that the company has decided to shift the focus towards services, hoping to capitalize on them, no less than on the iPhone. Among the other products in the October-December 2017 the services were in the first place. They brought 8,471 billion, 7.3 times less than the revenue from iPhone sales. Compared to the previous holiday quarter revenue from services increased by 18%. The second yield the direction of Apple.

IPad sales increased, both in quantitative and in monetary terms. At 1 and 5%. They brought Apple 5,862 billion dollars, and sold them 13,170 million pieces. And all the rest of the Apple products and partners, in sum, brought to 36% more income than the year before, in the amount of 5,489 billion dollars. Most likely, due to successful sales of the Apple Watch Series 3. But on a line item in the reports of the watch is not pulled.

Diagnosis

In 2017 Apple could put only one diagnosis: “healthy”. In all its activities, the company made a good profit, even where sales slightly fell. Alarm bells were heard analysts of the company, and they had the full and inalienable right to treat them differently than I reacted. They know better about what is and what is planned or expected. Perhaps we are on the verge of something fantastic. In any case, there are no radical changes to Apple any soon, not going to happen. The Board of Directors and shareholders happy. The rest of the company did not have to.

To be continued…

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